Petrol prices in Delhi jumped by Rs 1.67 to Rs 71.26 a litre on Tuesday while diesel prices went up by Rs 7.10 to touch Rs 69.39 a litre after the Delhi government raised value-added tax (VAT) on them.
Delhi government raised the VAT on petrol to 30 per cent from 27 per cent, previously. In case of diesel, VAT was almost doubled to 30 per cent from 16.75 per cent. Delhi government raised VAT to shore up its revenue which has suffered because of the national Covid-19 lockdown.
The price of petrol on Monday was Rs 69.59 per litre whereas diesel was at Rs 62.29.
Other than Delhi, the petrol and diesel prices remain unchanged in Mumbai and Kolkata, according to Indian Oil Corporation website.
As the country entered its second lockdown extension by two more weeks to contain the spread of Covid-19, it has eased some restrictions to revive the economy slowly.
On Monday, the Delhi government also imposed a 70 per cent tax on buying liquor to boost its revenue, which has been hit hard due to the coronavirus-forced lockdown.